Category Archives: Insurance

by | January 25, 2013 · 9:21 am

Hospitality Industry Property Risks: New York Hotel And Restaurant Suffers “Significant Water Damage” After Frozen Pipe Bursts; $200,000 Damage From Third Floor To Basement

“…A water pipe had frozen and burst early Wednesday morning…the pipe was connected to the facility’s sprinkler system and the malfunction triggered a response from the Geneseo Fire Department…The pipe burst Hotel Water Damageon the third floor, pouring water into a guest room and working its way down to the basement. There was “significant damage” in several parts of the building including two parlors, dining rooms and guest rooms and spaces above and below the rooms…”

The Big Tree Inn, 46 Main St., remains closed after a water pipe burst on Wednesday, flooding several areas of the landmark building and causing significant damage from the third floor to the basement. Big Tree Inn will remain closed through Friday, but Scott is hopeful that at least part of the facility will be able to open some time during the weekend.

Scott estimated repairing the damage will cost $200,000 or more. The restaurant does have insurance.

Facility managers were alerted to a problem by a guest who reported hearing what was believed to be a small leak. An investigation revealed the bigger problem.

For more:  http://thelcn.com/2013/01/24/burst-water-pipe-causes-significant-damage-at-big-tree-inn/

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by | January 24, 2013 · 8:28 am

Hospitality Industry Safety Risks: Alabama Hotel Sued By Guest Trapped In Elevator; “Sustained Injuries During Escape From Broken Machinery”

“…(plaintiff) and several others became entrapped in the hotel’s elevator…(she claimed) the hotel didn’t respond to the emergency call which resulted in two male guests in the elevator prying the door open and Hotel Elevator Accidentcreating an opening to escape…hotel administrators pulled King by the legs through the opening resulting in her falling and suffering physical injuries…”

An Alabama resident is suing a local Marriott-owned hotel after allegedly being trapped in an elevator and sustaining injuries during an escape from the broken machinery. Maureen A. King filed a lawsuit against Marriott Hotel Services, Inc., Renaissance Hotel Management Company, LLC, Renaissance Hotel Operating Company, Sodexo, Inc. and John Doe in the Orleans Parish Central District Court.

The defendant is accused of failing to respond to the emergency elevator alarm, pulling petitioner from the elevator and causing her to fall and failing to seek emergency assistance.

An unspecified amount is sought for past medical expenses, future medical expenses, past lost wages, future lost wages, pain and suffering and mental anguish.

For more:  http://louisianarecord.com/news/248516-renaissance-pere-marquette-hotel-blamed-for-injuries-sustained-by-guest-stuck-in-elevator

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by | January 23, 2013 · 8:11 am

Hospitality Industry Legal Risks: Texas Restaurant Group Settles EEOC “Religious Discrimination Lawsuit” For $25,000; Female Employee Prevented From Wearing Skirt To Work

“…Fries Restaurant Management has  agreed to pay Ashanti McShan $20,000 for “mental anguish and non-wage damages” and an additional $5,000 in lost wages…The restaurant management company also EEOCagreed to post its policy against religious discrimination on employee bulletin boards in every Burger King it operates in the state of Texas…”

A Burger King in Texas has agreed to pay $25,000 to a Pentecostal womanwho wore a skirt to work, court documents state. The payment settles a lawsuit filed in August by the Equal Employment Opportunity Commission (EEOC) against Fries Restaurant Management, LLC, which owns and operates the Burger King in Grand Prairie, Texas. The store allegedly asked a teenage woman to leave work after she arrived in a skirt. The EEOC’s lawsuit against Fries alleged religious discrimination, which is a violation of Title VII of the Civil Right Act of 1964.

In addition, it vowed to hold trainings for managers on federal anti-discrimination laws for the next two years, according to the documents.

McShan was a senior in high school when she came to work at the Burger King wearing a skirt instead of the black pants that are part of Burger King’s uniform.

In August 2010, McShan asked to wear a skirt instead of the restaurant’s uniform pants. Burger King “assured her that she could wear a skirt to work,” the filing says.

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by | January 22, 2013 · 8:17 am

Hospitality Industry Business Risks: Texas Hotel Loses Reservations After Gas Line Damaged By Woman In Stolen Vehicle; Thousands Of Dollars Lost As Property Was A “Crime Scene”

“…the gas company had to shut the gas off and hotel hot water boilers run on gas…(hotel) was without hot water for almost 12 hours and as a result lost 26 reservations…the woman who ran over the gas main will have business interruption insuranceto pay (hotel) back in restitution fees that could be assessed to her in court but that doesn’t mean it’s feasible…”

An Amarillo hotel is out thousands of dollars after it’s forced to shut off it’s gas while police investigate a crime scene on the property. Saturday, the Holiday Inn near I-40 and Ross had to shut off its gas after its gas main was run over by a woman who stole a van.

Normally, a business might turn to its insurance company for damages like these, but not in this case.

“According to our insurance company there was no liability for them because of the fact that it was a crime scene,” added Muse. “It if had been a gas company issue, a faulty main or something, then it would’ve been something we could go to out insurance company for.

“Most of the time, in order to collect stuff, they’ve got to be have the ability to pay for it. With fines, court costs, all of that, restitution, it’s a matter of do they have the ability to pay. So, assessing and collecting are two different things.”

Even if the defendant is able to pay, if they serve any time, probation or parole, it could be years before the person they owe sees any of that money.

“So, even if it’s assessed and could be collected, they could pay, it could be a long time before they actually pay it?” NewsChannel Ten asked Sims. “Correct,” he answered. “And, like I said, probation is like an interest free loan.”

“It looks like we’re just going to be eating the loss,” said Muse.

Muse says he’s fortunate his hotel is older and more established, otherwise this blow to the business’ wallet would’ve hurt them a lot worse.

For more:  http://www.newschannel10.com/story/20609001/crime-scene-investigation-costs-amarillo-hotel

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by | January 21, 2013 · 7:25 am

Hospitality Industry Property Risks: New Jersey Restaurant Fire Starts In Basement, Causing Heavy Interior Damage; Renovation “Crawl Spaces And Voids” Help Flames Spread

“…the structure had been renovated a number of times, creating created many crawl spaces and voids thorough which the flames spread. That made it difficult for firefighters to put out the fire…the fire appeared Restaurant Fireto have started near a storage room in the basement, burning through the first floor and then extending to the attic…”

A Goffle Road restaurant may be temporarily shuttered after a three-alarm fire spread from the basement to the attic early Sunday morning, causing significant damage to the interior, the borough’s fire chief said. Local volunteer firefighters rushed to La Cantina Restaurant shortly after 12:40 a.m. on Sunday, after a passerby walked into Engine Company No. 3 and told them that the restaurant was on fire, Fire Chief Joseph Speranza said.

About 30 to 35 firefighters responded to the Mexican restaurant — less than a quarter mile from the firehouse — to find heavy smoke coming from the building, Speranza said.

Firefighters battled the main blaze for about an hour and forty-five minutes, but spent a good portion of the morning chasing hot spots, he said.

For more:  http://www.northjersey.com/hawthorne/La_Cantina_Restaurant_in_Hawthorne_might_be_temporarily_shuttered_after_fire.html

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by | January 19, 2013 · 8:17 am

Hospitality Industry Employment Risks: Wisconsin Restaurant Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $41,000; Companies Must Take “Immediate And Effective Action To Stop It”

“The Supreme Court has held that when an employer learns of sexual harassment, it must take immediate and effective action to stop it…Employers who don’t protect their workers should know that the federal EEOCgovernment will enforce the national policy against sexual abuse in the workplace…retaliation complaints have been the fastest-increasing type of complaint filed with the EEOC over the past 10 years…”

A Merrill, Wis., restaurant will pay $41,000 and furnish other relief  under a consent decree entered by the federal court in a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the EEOC’s suit (EEOC and Sherry L. Brown v. Merrill Pine Ridge LLC, et al., No. 3:11-cv-589), one of the cooks at New Pine Ridge restaurant, Shahi N. Selmani, created a sexually hostile work environment when he repeatedly made crude remarks to waitresses and grabbed their breasts.  The EEOC alleged that, despite the women’s complaints, restaurant owner Qemal Alimi did not stop Selmani’s harassment and instead fired some of the waitresses in retaliation for their complaints.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit in August 2011 after first attempting to reach a pre-litigation settlement through its conciliation process.

Selmani did not stop working for the restaurant until months after criminal charges were filed against him.  Eventually he pled no contest on Dec. 9, 2010 in Lincoln County Circuit Court (Case Nos. 2009CM25 and 2009CM101) to having committed Class A misdemeanor battery against three waitresses.  Charges of fourth-degree sexual assault, bail jumping and disorderly conduct were dismissed but “read into” the record of his conviction.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/1-17-13a.cfm

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by | January 17, 2013 · 10:06 am

Hospitality Industry Property Risks: Michigan Motel Fire Starts In Bathroom Fan And Results In “Complete Loss” To Building

“…it appears the fire started in a bathroom fan on the motel’s second floor, although a direct cause wasn’t immediately identified…(firefighters) made an initial handline attack and were able to stop it from spreading Motel Firesouth, but the fire did come around and spread indoors through the additional building…”

A metro Detroit motel that has been around since the 1960s is now a complete loss after fire tore through the building early Thursday morning. WWJ’s Ron Dewey reports the fire broke out around 2 a.m. at the Flamingo Motel on Groesbeck Highway in Fraser.

Firefighters from Fraser and Roseville responded and worked for about two hours before the fire was extinguished. Fraser Public Safety Lieutenant Dan Kolke said damage to the building is extensive.

All 10 of the motel’s occupants were able to get out safely and uninjured. Lilly Eilem said she saw the firetrucks outside her window, but didn’t put two and two together until she heard Meeks pounding on her door, telling her to get out.

Two firefighters were taken to the hospital for minor smoke inhalation.

For more:  http://detroit.cbslocal.com/2013/01/17/two-firefighters-injured-in-motel-fire/

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by | January 16, 2013 · 7:39 am

Hospitality Industry Health Risks: New York Restaurant Sued By Guest Who Choked On Fish Bone; Throat Surgery To Repair Perforated Trachea

“…She was brought to Lenox Hill Hospital, where she required surgery and a four day stay. Doctors found a Hospitality Industry Lawsuitmicro perforation of her trachea and she was unable to speak for two weeks after being discharged…”

An Upper East Side restaurant that specializes in serving fish is now choking on a lawsuit because of a tiny little bone that lodged in the throat of one of its customers. Claire Amiano, a Michael Kors specialist at Saks, is suing Fulton NYC, a fish restaurant on East 75th Street, saying that she needed emergency throat surgery in August 2012 because a filet of fish she ordered for dinner was not entirely deboned as promised.

Papers filed in Manhattan Supreme Court say when Amiano started to choke, employees called 911 and offered her olive oil and bread to dislodge the bone.

Fulton is owned by Joseph Gurrera who founded the small local chain of Citarella stores which offer high end groceries. He also created Tutto Italiano, an Italian specialty shop.

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by | January 15, 2013 · 7:48 am

Hospitality Industry Safety Risks: California Hotel Faces “Negligence Lawsuit” Over Carbon Monoxide Leak From Hotel Pool Boiler

“…(the plaintiff) was a guest at the time of the evacuation, which was believed to be caused by a boiler leak…claims the hotel was not equipped with carbon monoxide detectors resulted in exposing paying guests to hotel Carbon Monoxide Poisoninghazardous levels of the gas… he’s claiming negligence and requesting the hotel cover costs of general damages, medical bills, potential loss of revenue and legal fees…”

A carbon monoxide leak that prompted the evacuation of the Embassy Suites San Francisco Airport hotel in Burlingame in November prompted a lawsuit from a guest who was staying at the hotel. On Friday, a lawsuit was filed against the hotel on behalf of Robert and Diane McNamara by San Francisco-based attorney Richard Schoenberger.

Firefighters were called to the hotel at 150 Anza Blvd. to test its air quality and evacuate guests around 1 a.m. Thursday, Nov. 8, according to news reports at the time.

The carbon monoxide was traced to a boiler that feeds the hotel pool and a spa, Central County Fire Chief Don Dornell said at the time. The unit was immediately shut down, and carbon monoxide levels dissipated, he said. At the time, it was reported that there were no injuries nor was treatment required of anyone. Guests were able to return to their rooms shortly after 5 a.m. Crews remained at the hotel monitoring the air throughout the morning.

For more:  http://www.smdailyjournal.com/article_preview.php?id=1761499&title=Carbon%20monoxide%20leak%20at%20hotel%20sparks%20lawsuit

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by | January 14, 2013 · 8:31 am

Hospitality Industry Property Risks: Texas Restaurant “Natural Gas Fire” Caused By Faulty Water Heater; Damage Estimated At $15,000

“…When firefighters got to the scene, the cook there told them that he heard the hot water heater pop and Restaurant Firethat’s when they saw the fire… Crews immediately evacuated the restaurant and the surrounding businesses, but they also had to cut the gas off before they could put out the fire, which was located in the restaurant’s mechanical room…”

Fire officials said a hot water heater is to blame for a natural gas fire at a Chinese restaurant on the city’s northwest side. The fire broke out at about 4:18 p.m. Sunday afternoon at the Hunan Chinese Restaurant.

Fire officials said this natural gas fire caused about $15,000 worth of damage.

Nobody was hurt in the fire and the surrounding businesses opened back up later that Sunday.

For more:  http://www.ksat.com/news/Officials-Water-heater-causes-fire-at-Chinese-restaurant/-/478452/18116632/-/dt62eg/-/index.html

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